World Liberty Financial’s Trump-linked WLFI token plunged in price after a high-profile debut, prompting its backers to propose an aggressive buyback-and-burn plan to steady the market.
Trading venues including Binance, OKX and Bybit handled early volume, and roughly $1 billion changed hands in the first hour on some platforms, according to coverage of the debut.
Reports say early investors were allowed to sell a portion of their holdings, which likely amplified selling pressure as markets digested the newly tradable tokens.
The aim, according to proponents, is to reduce circulating supply and support longer-term holders. Critics warn that burns funded by fees may take years to materially reduce the massive unlocked supply.
Analysts and commentators pointed out a mismatch between headline valuations and the practical reality of supply dynamics. Depending on which price is used, WLFI’s market cap was reported across a wide band—some outlets published peak valuations in the billions, even as price swings kept the effective market cap volatile throughout the day.
Reports disclose that the project’s ties to US President Donald Trump and his family have drawn extra scrutiny.
World Liberty insists the project is a private venture with governance rules, but regulators and critics have said they will be watching closely.
Market participants are now watching vote outcomes and governance updates closely. If the fee-to-burn plan is approved and implemented, it will be measured by how much protocol revenue it can divert into buybacks and how quickly those repurchases can reduce supply.
Featured image from Meta, chart from TradingView
